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View Diary: CEO Ron Johnson paid Sen. Ron Johnson (R-self) $10 million, settling campaign debt. Is it legal? (49 comments)

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  •  yeah, a closely-held corporation (4+ / 0-)

    I am willing to bet no document exists.

    It may well have been the plan and discussed, but formal papers?  Who gets around to that until the bank is asking for something or other?

    But it will exist.  what is to stop it?  Who is going to subpoena the computers to show when the document was created?

    Or find smoking gun evidence of the notary on staff at Pacur backdating it?

    Not sure what hay can be made from this in our current corporate citizen world...I think the most damage can come from his response to the Journal Sentinel reporter...

    "I don't have to explain it further to someone like you."

    You mean a Wisconsonite, Ron?

    •  Written plan requirement (1+ / 0-)
      Recommended by:
      Hunter

      Under IRC Section 409A, all deferred compensation agreements are required to be in writing.  Failure to adhere to the regulations--which are extraordinarily technical--pertaining to deferred compensation results in a 20% additional tax and penalty interest.  The IRS is quite serious about enforcing 409A, too.

      "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

      by Old Left Good Left on Tue Jun 28, 2011 at 07:37:31 PM PDT

      [ Parent ]

      •  Oh, I understand that. (0+ / 0-)

        But he took office this year...

        I'm sure the document will exist by  the time he files for this year, especially since he has gotten this heads up.

        •  Hard to do (2+ / 0-)
          Recommended by:
          Sue B, dragonlady

          It's practically impossible to write a compliant deferred comp plan without a lawyer, and most lawyers will draw the line at fabricating a backdated plan.

          It would also involve fabricating several years of past financials to reflect accruals of deferred comp.

          So not impossible, but difficult.

          "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

          by Old Left Good Left on Tue Jun 28, 2011 at 08:21:24 PM PDT

          [ Parent ]

        •  Back dated forms (0+ / 0-)

          I sure he can get what he needs if he shops in the same place as Justice Thomas.

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